Apple has reduced production orders for the iPhone 5c in the fourth quarter following lower-than-expected demand, people familiar with the matter told the Wall Street Journal. While demand for the more expensive iPhone 5s, especially the gold version, has been strong, the lower-specification 5c has not met expectations, the report said. As a result, Apple told its Taiwanese assemblers Pegatron and Hon Hai Precision Industry Co that shipments of the iPhone 5c in the fourth quarter would be cut.
Pegatron, which analysts say assembles two thirds of the iPhone 5c devices, was told orders would be cut by less than 20 percent, a person familiar with the matter said. Hon Hai, which assembles the remaining low-cost iPhones, was told orders would be cut by a third, said two people familiar with the matter. One component supplier was notified of a 50 percent cut in orders for iPhone 5c parts, which analysts said could suggest a slowdown in device shipments next year, or mean an inventory reduction by assemblers.
At the same time, Apple has also raised orders for the high-end iPhone 5s for the fourth quarter, two executives at Hon Hai said. Apple declined to comment.
